Changes for CFA Level 1 - 2027 | Aswini Bajaj

Added: 2026-05-11

[00:00:05]We're looking at the CFA level 1 2027 curriculum. So you have the list of subjects and chapters and learning outcomes and all. I want to focus on the changes in the curriculum right now as to 2026 to 2027. So if you see every chapter is divided into losses, learning outcome statements and all. So about 85% of the syllabus is approximately the same with about 15% of changes or new content out there. So whatever this change is is 95% equity 5% in quants and there is no other change. So whatever is the change the total change has happened in the equity subject quans has a little bit of rearrangement jumbling up etc. Versa changes where otherwise there is no changes as such. Uh ethics I'll let you know there's no change. It's just that we have seven standards which we study in ethics and the seven standards has been broken into seven different chapters. So we have standard 1 2 3 4 5 6 7 let's say standard 3 has a b cde e etc. So standard one is one chapter standard two is two chapter earlier all the seven standards were the same chapter. So I'm not counting that has changed it is just that the chapter has been split. Couple of places corporate issuers has again been renamed as uh corporate finance. It was earlier corporate finance only. So you know bits and pieces here and there some changes in terms of naming or combining or you know splitting the chapters has happened. Quants I feel there is a bit of changes lot of jumbling up and all etc they've done but you know we've always studied quans and all these subjects by ourselves in our way of studying and in class once you study you understand that you know this was related to this for example in the order in which the book is given I mean I cannot do a Roy safety first criterion before doing a normal distribution. So the order any which ways does not matter. So qu you don't need to worry about equity there's good change because there are a few couple of very interesting chapters also deleted I would love to teach that any which ways maybe I'll keep it for you in case you want to learn how a index is constructed how a stock market index is constructed couple of theory chapters which was a little repetitive and irritating that has been removed so I'm happy with the change they've included equity research report etc couple of chapters which is very uh practically application oriented I'm happy and there are a few chapters couple of chapters equity valuation that has been split. I think a little bit of level two and level one had a little overlap in equity. Uh uh you know for 13 14 years I've been seeing how the syllabus and how the subjects have has been evolving. So my expectation is that level two equity will be reduced or something or there'll be something else added because level one basis level two syllabus change. So my assumption is that level two there should be uh changes we are looking at because equity has been more in line with level two curriculum case say there was some overlap and all that we have brought in over here so I'll take you through the changes not to worry but that there is 15 17% change that is not the amount of change that is actually there the actual change is less because qu as I said it's more of rewarding jumbling up etc not actual actual change in the curriculum so much equity has a decent change there also So there's a lot of overlap and the prerequisites that we have this is for quans economics and financial statement analysis for these three subjects you have some prerequisite chapters that is the concepts you need to know but it is not tested on the exam that is exactly the same. So it is not a problem at all. So reading wise if I see I' have I mean there are students who even use 2 years old books. So 2025 chapter number 2026 chapter number and 2027 this is our syllabus chapter numbers and all this is given. So prerequisite if you notice qu is exactly the same in the quans part there's a lot of changes that we are noticing time value of money in finance is exactly the same other than that like for example you know earlier they divided the chapter of estimation and inference and hypothesis testing into two now they've combined the chapters estimation and inference and hypothesis testing into a single chapter. uh there's been some changes with regards to portfolio uh mathematics and portfolio chapter also they've changed again they've re you know jumbled up the chapter again into a return and risk and financial portfolio. So more or less the concepts are going to be remaining the same. You need not worry the basics remain the same. Time value of money again has been split and again you know types of financial returns. So you had time weighted rate of return earlier you still have time weighted rate of return.

[00:04:27]It is just that the naming of chapter and jumbling of losses or topics within the chapter that has been done once the book is out obviously I'll update you in more detail if you see economics corporate finance exactly is the same I hope you understood new we've highlighted in orange changes in yellow and deleted in gray so this is all the same equities a lot of changes there this I want to spend time and I want to get into more details about it and you have some deletion over here market efficiency company analysis forecasting actually some portion of company analysis forecasting has been put into company analysis past, present, future and jumbled up the topic a little bit.

[00:05:05]So the amount of changes that you think that is there actual changes are less than that fixed income exactly the same derivatives alternate investments uh portfolio etc it's all the same ethics acha this I forgot there is one chapter gibs that has been deleted we anyway study this in a lot more detail in the level three curriculum so in level 3 CFA we are going to be studying Gibson detail so it's good only that they've deleted the chapter in level one so that you can study it at a stretch in level three in detail because the entire L1 was anyways included in L3 gibs and you needed that L1 background knowledge. So it's good it's a good change to see because it's better to study things more holistically in one place than to you know split it if not needed. So let's go through the loss wise changes your prerequisites are exactly the same. So what we've done is prerequisites we've numbered it as PR6 prerequisite chapter 6 chapters there and chapters LOSs are provided 2027 this was the LOSA 2026 also LOSA so in case somebody is using old book and you need to refer to you can otherwise not needed as such here so over here we're looking at return we've already discussed risk premium risk free rate inflation now the loss heading has changed a little bit uh we've already discussed inflation risk premium There are three types of risk premium. Once the books are out, we'll again be able to see in more detail. There are different types of return like money weighted and time weighted rate of return. We've already done so. So this is the same. It's just that they have reverted the loss. So that is the only thing that is happening over here. I think this is going to be new or we'll need to see how to look at this one. So if you're looking at time value of money in finance anyways, you're supposed to be doing it at the end of syllabus.

[00:06:48]So you have the order of study.

[00:06:50]Basically what happens now? How to calculate this in fixed income, how to calculate this in equity, in currency, in economics. Those four or five applications of time value of money you're studying in four five different chapters and they've combined all the applications of time value of money in different subjects or different chapters over here. So this you have to study you can't study before the syllabus is over.

[00:07:10]Statistics again we already know mean, median, mode, standard deviation and all skewness, curtosis these are all the same. Coariance correlation also we've studied. Now instead of calculate, interpret and evaluate. Maybe the previous LOS was calculate, analyze and evaluate. So you know minor differences should be the same according to me.

[00:07:28]Semide deviation also we've studied.

[00:07:30]Coefficient of variation also we've studied. Possibly there is a little more addition done over here in terms of content. We'll see that uh they've removed a a bit over here. So I really enjoyed teaching Roy safety first and shortfall risk and all shortfall risk.

[00:07:44]You might need to refer to it in level three. So maybe I will need to teach you this in level three. So not a problem. U interpreting coariance correlation and joint probability distribution. So that is good. I mean it was a little uh no this was there. This is going to be there in portfolio. This will be used in portfolio. I'll I'll show this to you again. This is included. Uh the unconditional values of mean was there.

[00:08:08]Variance coariance is added. We'll be able to do it. There's a little bit of changes here. So there could be little bits and pieces added like for example Beijian we've already done base theorem investment problem with base theorem we'll see if there is a new type of sum added. So the idea is that your mean median mode skewness curtsises standard deviation your normal distribution your uh probability probability based theorem RP risk return calculation of portfolio coariance correlation uh when you're looking at time value of money in finance IRR NPV TWR MWR these basic concepts will be exactly the same if there is any extra sum or less sums that we need to do on something less though I don't think so but anything extra we look at that logn normal distribution they've removed over here but I'm sure I'll have to do somewhere else. Central limit theorem as it is we'll have to do hypothesis testing type one type two error etc these are all a part of your syllabus parametric nonparametric it was there it is there now as well so it is just that you know you're combining two losses into one etc is what you're doing a little bit of sampling population theory part has been removed I'm happy with this this was not making a lot of sense so I'm happy with this part so this part is deleted um when we're looking at uh correlation coariance everything you'll have to do RP sigma P etc. You'll have to do there's no choice. Uh when we're looking at mean variance portfolio etc. these were a part of portfolio chapter. So they probably shifted this once but capital allocation line minimum variance portfolio all of these things are going to be a part of your portfolio. They were anyways there in portfolio. You'll have to do it.

[00:09:41]There is no choice. So it's not a new addition. Don't treat it that way. And uh historical simulation and investment application we've studied simulation scenario sensity all of that. So there could be a little extra which we'll see once the books are out. Now bootstrap resampling is there. So probably you'll have to do a little bit of sampling and distribution part any which ways. I'm also happy that this contingency table part has been removed. So not a problem with this. There is again combination of certain losses into one single loss. So your entire linear regression with ANOVA regression coefficient B1 B 0 etc calculations will be there.

[00:10:17]Now uh this CAPM part doesn't matter because this was anyways there in a part of portfolio last in the previous syllabus 2026. So it doesn't matter you will still have to study this. This would not be a problem. This is more an application and as I said economics etc the same corporate finance same only the naming of the subject has changed financial statement analysis same so it's all black in color okay now equities there are a little bit of changes over here.

[00:10:45]So equity instrument features. So what are the different types of equity and private equity public? This was already there in the theory chapter earlier.

[00:10:52]They've removed a lot of parts of that chapter and they've created a small chapter out of this. So if you see this was two different chapters 39 C 42 C earlier now becomes 39 AB and it's a small chapter. So not a problem. By the way, what I'm going to be doing is for any deletions I'll be removing that.

[00:11:09]Whatever rearrangement is needed, I will be doing that and it'll be reflecting in your learning management system in your classes, in your lectures and all. So don't worry about it. All those changes will be done. And equity anyways is going to be covered. I mean as per your order of study. Equity comes towards the end. So you don't have to worry at all.

[00:11:25]And quans part I'm just going to look at it and whatever adjustments are needed.

[00:11:29]I'll look at uh look at that once the books are out. I'll have to again reook at the quans part. But the basics of quans you'll have to do maybe the extra portion or whatever quans has maybe I'll keep it towards the end but uh otherwise there is no change in ethics or any other subject altogether. Uh ethics only gibbs will be deleted. So that is an easy thing. You just have to skip gibs but uh yeah that is that is uh about it.

[00:11:51]Now when you're looking at equity again you know the voting rights and all was very much in detail covered in 42B the same thing you're covering in 40A. So chapter number as I said rewarding of loss and a little bit of jumbling up has happened. voting with proxy uh etc was already there. I think there is more content added over here. So we look into this. So the entire equity jurisdiction class voting process and all is over here. This was already there. Secondary market, private, public market and all.

[00:12:17]So earlier it was in a chapter 39. Now they've just split it into a different chapter. If you don't want to go through the detailed curriculum changes of equity, it's fine right now because you're not in equity right now. By the time books are out, you will have anything anyways everything revamped.

[00:12:30]Only those who have already completed equity with 2026 curriculum will need to understand the changes for 2027 curriculum. Exchange of of exchange and OTC again this is basic terms and all theory part we'll discuss. Uh this was not there in that detail in previous curriculum. Although in rough in a brief manner in one of the theory chapters we had organi uh organizational structure or something was the chapter's name. Uh liquidity measures also we'll have to see this will be relatively on the newer side.

[00:12:58]uh equity indexes was already there types of equity indexes stock split repurchase etc was already there again as I said it is just rejumbling up of the entire thing dividend payments so dividend payment ratios etc are there then you have your x dividend date come dividend date etc so all those things are already there price return total return was already there in equity valuation chapter I'll put the loss number also this was there uh price and value of security the difference was already there in one of the chapters they have revered the loss also that is why We have seen a change book value, market value, enterprise value, etc. We already had it's just that it was split into different losses earlier and the loss heading was different. Equity valuation models and advantage disadvantage was already there. This has been deleted. Company's business model not very important. It was a theory part any which ways. Cash flow valuation methodology was already there. So there is no change as such over here. Uh discounted model, discount discount model and free cash flow, equity firm model. All these things were there.

[00:13:57]Resol income model was already there.

[00:14:00]Intrinsic value, present value models, etc. was also there. It's just that they've jumbled up the curriculum. So once the books are out, then we will be able to get into this. We already had the constant growth model and multi growth model. All this was a part of a single chapter equity valuation chapter earlier. Then when we looking at valuing non-allable, non-convertible preferred stock, it was already there earlier also. It's just that they have re rewarded the loss over here as well. We had the comparables method also. We had the enterprise value method also. We have the multiples based equity valuation method also and uh we have the multiples based on past current and projected future values also. I'm assuming they're talking about leading trailing P ratios etc. We'll see but I'm guessing there is a lot more additions that has been made. As I said level two equity was more in detail as level one like we studied the DDM model, FCF model and relative valuation model in level one and then we had separate chapters on DDM, FCF and relative valuation in level two. I think what they've done is they've brought a little bit from level two to level one.

[00:14:58]Therefore, I'm expecting level two also should be having changes if uh in the near future. Financial statement forecasting also we had bits and pieces earlier uh because we had this chapter.

[00:15:09]No uh financial company analysis forecasting and all. So company analysis forecasting had all of this. Now these things have been deleted and they have been rearranged over here into a different chapter altogether. So constructing equity valuation model based on subject company uh financial statement forecasting this is coming from the financial model financial forecasting chapter only it's just that they've reverted your industry company analysis uh chapter remains the same company analysis past present again you see this is coming from this chapter so earlier we had this chapter company analysis forecasting and all from that if you notice there are certain losses that have been picked up and again a little bit of rewarding has been done this is going to be relatively new in terms of equity research report making and this part again you would notice is a part of portfolio CAPM arbitrage pricing theory multiffactor model multiffactor model arbitrage pricing theory is also there more in level two so as I'm saying that equity has a lot of changes we'll not do equity right now till the time books are released other all the other topics and subjects we'll complete now market organization structure as I was saying this is a theory chapter this has been deleted Um then you have market organization and structure. I told you now there was this OTC market and all different types of markets are there. We were discussing exchange traded. One second over the counter etc. Equity exchange trading.

[00:16:41]So these portions they have been lifted from here. So they've deleted this detailed chapter and parts of it has been taken and added to the previously added new chapters. This was a security market index. I'm not very happy about this chapter being deleted because here we were talking about how to construct a security market index. How is an equity market index different from a fixed income market index and all but this theory chapter is deleted and there has there was a little bit of repetition here and there. So I'm happy. Market efficiency is also an interesting chapter. I'm not sure why did they delete it. But basic introduction will be needed in technical analysis chapter in quans. So we'll do it over there.

[00:17:16]This was again a relatively theory chapter out of which a part of it has been lifted up. What is uh liquidity and public equity, private equity, all that is there. Company analysis forecasting I feel is has been picked up and added into the previous chapter where we were talking about equity research report and all. So we were talking about the company analysis past, present, future equity research reports. So this has been updated from there and uh your equity valuation concepts. This has been split into those two three chapters above and some portion has been deleted.

[00:17:46]I'm hoping and looking forward to the newer parts of equity valuation and the way they've done but fixed income etc is all the same derivatives fixed income alternate investment portfolio there's absolutely no changes. The only thing over here in ethics is now you have standard one one full chapter standard two is a full chapter. So all the standards have been split into three parts. We talk about the standard. We talk about the recommendation of standards and we see how to look at whether the standard has been followed or not followed. So demonstration, recommendation, identification, standard three, one chapter, standard four, one chapter, standard five another chapter, six another chapter, seven another chapter and Gibbs has been removed. So your Gibbs topic has been deleted. So ethics gives deleted chapter split no other changes. Quants lot of jumbling up. Equity major changes. We look at it once the books are out and then we'll be looking at studying this chapter equity.

[00:18:40]So I think that is broadly the changes.

[00:18:43]So if you have 2026 curriculum books there's no problem or even 2025 no problem. You have all the mapping and everything over here except for equity you can study as it is. Quants there'll be a bits and pieces of changes. I will at least delete the portions that is not needed uh immediately and the moment books are out we'll again go through it.

[00:19:01]Equity industry company analysis is actually a very unrelated chapter. So you can study this chapter with the uh lectures and the books you have if you want. There's no problem. Other than that because there are so many changes and so much of jumbling up and all my suggestion is hold equity. Do not complete equity till the new books are out until the time I'm able to update you as to what to do and what not to do.

[00:19:25]Right? Qu I think you can easily complete the curriculum with what you have. There's no problem. The books are out. I will again update you and I will also mark the lectures and tell you that these lectures are supposed to be 100% completed because there's going to be relation with fixed income and uh derivatives and other chapters especially your basics of time value of money and all. So I'll do the marking and I'll update you on the quans part as to what you need to do and what you need to do later once the books are out.

[00:19:50]Equity will do it later. Ethics you do as it is. All the other subjects you do as it is. So I hope this is comfortable.

[00:19:56]Even if you're using 2026 curriculum, don't worry. I will give you all the notes and everything that is needed for equity. You do not need to purchase any 2027 curriculum even later. And if you do not have any of the books and you're in the middle of preparation, I believe the books should be out by August 2026 for 2027 exams in my opinion uh early August or so. So if you want you can buy the 2026 books and study if you wish to otherwise you can study you you know if somebody's starting preparation complete alternate investments complete financial statement analysis complete economics I would strongly suggest you complete basics of time value of money so that derivatives can be easily completed uh complete the basics NPV IR TWR MWR so then you can easily do corporate finance also because you cannot do all the theory so follow the order of study that has been given to you very scientifically made in terms of alternating theory and practical understanding the flow of subjects because I know I'll need something of derivatives than economics. So I know how to teach you know the interconnections in the subjects is very important for that logical flow and you need to improve retention. So the chapters which will have more of a retention issue I'll have to push it towards the end. So it's very logically made. So follow the order of study that is given to you and for 2027 whatever changes or you know uh this thing has to be done changes has to be done with the uh lectures I will take care of that. So study alternate investment start with alternate investments and complete that very easily. Quants little bit of changes as I said equity do not do. So summary is quants you do your basics so that other subjects are absolutely fine.

[00:21:25]Equity do not do till the new books are out and I uh give you a brief ethics you do as it is no problem. Gibbs we are going to ignore. In fact I'll get the chapter deleted for you. That's all. So study very very well and all the very best for your 2027 exams.